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Subject: Council Tax

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Author Messages
parveenm
Posts:1

03 Oct 2006 08:31:43 Alert 
I have been renting a house to tenants on a room by room basis over the last couple of years i was under the impression that they were liable for this and haver now received a bankruptcy notice stating if it is not paid they will declare me bankrupt and sell any assets i have to recoup any monies owed to the council.
When signing tenancy agreements with tenants under 1.2 of the contract it stated that they would pay all charges in respect of electric, gas, water and council tax.

However when i have mentioned this to the council they have stated that because it was a multiple tenacy i was responsible but this wasmade clear to tenants when they moved. i made the mistake of not transferring the bill out of my name.

is there anything i can do to avoid paying for this as it is in excess of £5000.
Deborah B
Posts:7

03 Oct 2006 09:01:23 Alert 
I don't the answer to this but have you tried the Citizens Advice Bureau, their legal team may be able to help
wagtap
Posts:3

03 Oct 2006 17:36:56 Alert 
I can't give you the answer to this, but I will say that you should not, as a matter of course, accept or believe a word the council says.

They are SO desperate for cash they'll twist anything to recover more money. You're a better bet for it than the departed tenants, so they'll chase you first (they're probably chasing the tenants too, unbeknown to you).

Seek independent advice.

If you're in the clear, write a firm letter to the council refusing to pay and pointing them in another direction.

Don't let their emotively written letters deter you. As long as you write to them and keep the case open, they won't go to court...
Sparky
Posts:9

04 Oct 2006 11:55:27 Alert 
No you are not responsible for the Council Tax, the tenants are as per your signed tenancy agreement. I would simply write to the Council sending them a copy of that said agreement, together with the names of those tenants.
robski
Posts:2

19 Oct 2006 05:25:35 Alert 
As a general rule of thumb, it will depend on what type of contract they have signed i.e do they all have separate contracts or are they all on 1?

If they are on separate contracts:

Then your house will be deemed by law/council as a HMO (house of multiple occupancy) which to cut a long story short, you will be liable for the CT.

If they are all on the same contract:

They will be liable as they will have what is known as "joint and several liability" this means that they are all responsible for any shortfall in rent/bills etc so the CT has to be paid by them.

We use the 2nd option and put a clause in saying that if one of the other people dont pay, we guarantee the others may not be liable as it is unfair to charge others for someone they may not know.

If they are on separate contracts, you could ask them all to sign 1 contract and see if they go for it. If they do and they are happy to have it backdated, then you may be in ther clear.

Otherwise, good luck as you may need it!
Sean
Posts:1

23 Oct 2006 08:51:50 Alert 
Hello. You are unfortunately liable for the council tax as there are seperate contracts for the one property. I went to court against Manchester City Council with exactly the same problem, and they aren't interested in what the contracts say, just that they are seperate ones for the same house. You will then have to chase your tenants for the council tax arrears as they signed a contract to pay it. It makes no difference whose name the bill was in.
Alice
Posts:2

08 Mar 2009 09:12:01 Alert 
Been there done it and got taken to the cleaners. Listen to Robski as he knows what he is talking about. In my case I gave each of my 4 students a copy of their own Assured shorthold tenancy agreement relying on the same artical 1.2 of the agreement, each student with the sum they personally had to pay. I had never before heard of HMO s or House of Multiple Occupancy (for which the landlord is viable for Council Tax) Students are actually exempt in England, but one girl turned out not to be a full-time student because of a couple of missing hours a week.
I, in my innocence, helped her to get housing benefit etc and then after a 9 month fight with Thanet County Council was deemed liable for 3/4s of the council tax for the whole house, although 3 other students were exempt. However I kicked up a stink and found out from a friend, who works for the council that there is a tribunal that the council must agree to going to, iif you are not satisfied with their invoice. With the threat of the tribunal over their heads, we finally reached an agreement before the tribunal-which cost me about 350 pounds
Everone reading this beware-don't give people renting your house separate contracts
If one person in a house of students is not a student, that person is liable to pay 3/4 of the council tax for the entire property
hope I have been of help
I can only advise that you insist on a tribunal hearing, which will at least delay the proceedings for a long time, during which you will have time to A) get the tenants to sign the contract that Robski suggested i.e all on one contract- the council actually suggested this to me but I was too stupid to do it
or 2) try to get finance to stop the repossession.
Anyway you can arrange a certain payment per month, so even if you have to pay the full sum normally you can arrange a monthly payment. This is how I have experienced it
anyway.
Alice
Posts:2

08 Mar 2009 09:22:25 Alert 
Hello Robski
I liked you solution to the problem of liability between people who don't know each other. My question is- how do you work the contracts if you have people signing them at different times. I rent to students and so far I have always had groups. Now I have a second property and having been stung by the council already (see answer to subject given by Alice)I am wondering what to do if I have one student wanting a room now,then one in a month's time and then 2 in August all to start in Sepember 2009. How do I make a contract with someone together with all the other tenants that I don't yet have? and how can I fix a rent for the whole property, when I don't know how many students I will have.Do you have a solution to that Thanks
Alice
MSTALEY
Posts:1

01 Apr 2009 08:20:43 Alert 
as a general rule it is always a good idea to notify the council straight away when you have tenants of any kind, however it would be difficult fo them to apportion tax by rooms.
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